good afternoon, everybody. welcome to "power lunch." alongside kelly evans i'm tyler

mattson. nice to be back at home at our main anchor desk after a day in washington yesterday. rally day on wall street you and across the world after yesterday's fed decision. >> stocks are sitting around session highs. the dow up more than 600 points. what struck me as we kind of went throughout the afternoon yesterday the tone appeared the markets initially excited and rethinking it and wake up this morning and we're off to the races. >> seems to bolster the argument the fed sees a bit of a soft landing. the market seems to think the same way. and one of our first guests is going to say everything is stacking up pretty nicely for continued growth in the markets. >> i'm hearing steve liesman talking to people saying is it going to be a series of 50s. the 10-year is up. 3.3. maybe brighter growth prospect s. hopefully more than that than inflation. the impact on real estate the drop in rates enough to get buyers off the sidelines.

the funny thing, the 10-year is higher. >> 10-year is higher. >> doesn't matter what fed funds rate is. >> the other argument we heard yesterday down in washington was the idea that when rates start a slow move down people sometimes hold off thinking i'm going to waited a little longer because the rates are going to come down more. >> the j curve. >> i'm not seeing the house i want. >> right. >> so i'll wait a little longer and rates will come down more. they tend to come down, mortgage rates, in the winter months anyways, so maybe i will get a better deal if i wait. plus oil prices are down 20% this year despite geopolitical tension. go to the gas station and see how much gas prices have come down. the u.s. has increased its production of oil and especially natural gas so is the industry ready for even more production. >> who knows. we're going to chat it a little bit later on, but right now, the united states as we pointed out several times producing record

amounts of oil domestically, record amounts of natural gas. we are the number one producer in the world of both of those things. >> yeah. >> let's see how much it might go up from here or if it will. >> back to the competitiveness frorp mario draghi. one of the challenges higher energy costs is a huge structural advantage for the u.s. right now. >> where am i supposed to look? right there is where i'm going to look. markets are rallying today. the dow and s&p hitting intraday record highs. they are on pace to close at all-time highs. but will the market be able to keep up this momentum and how long will the rally last? joining us to break it down is hugh johnston, chief economist at hugh johnston economists and kevin curran at washington crossing advisors and our own mike santoli. hugh johnston, let me begin with you. you strike a fairly optimistic tone, but you think that the market is relatively close to fully valued and if you're looking for an entry point it

might not be here. am i summarizing your view correctly? >> you're hitting it right on -- nailing it right perfect. yeah. this is great. the fed has done a great thing. they set the stage for an extremely good 2025, whether we're taking a look at the economy, earnings, s&p 500 earnings have a shot at being up 15%. the fed will be cutting rates, long-term interests, likely to come down some and mortgage rates also. be patient. that i think is in the cards. stock prices should do well. that's the good news. the bad news, or not so bad news or not so good news anyway, is just as you say, is, tyler, is that the markets had a big move to the upside and as i do the numbers and crunch the numbers, we're over valued, or interestingly enough, the s&p is almost exactly where i had forecast, with some statistics, where it would be at the end of 2025. so the market, the stock market, has gotten ahead of itself.

it's over valued. and that along with some other things, such as widespread optimism, makes me very concerned about the near term. we need a good entry point and this is not it. >> so kevin, let me turn to you, and your reference to your wca, i assume is washington crossing advisors' barometer and what it has been saying and if i'm reading right, it has been saying that the economy has been slowing more abruptly than maybe some of the backward looking measures would indicate. and that you see that continued slowing into the fall and next year. am i reading that right or is my barometric pressure wrong here? >> tyler that's spot on. we published this piece on our website and we walked through the comparison of what our analysis of the data sees with the fed, and we would -- we would point out that the data really not peaked in the spring

and has been decelerating since then. and that was a main reason why the fed needed to move. the other reason the fed needed to move was because in traditional academic policy thinking, if the unemployment rate is moving down and the -- i'm sorry, if the inflation rate is moving down, the fed is not standing pat. they're actually getting tighter relative to conditions. so the fact that our data seems to have cooled off in the spring, we cut our equity exposure a little bit earlier this year in accordance with that, we would agree that the fed did the right thing by cutting rates yesterday. but there are some contradictions in what was said yesterday. >> let's tease those out a little bit, those contradictions and see if they can tell us what the fed might do next. >> yeah. for example, in the press conference, jerome powell talked

about that the committee was in no rush to cut. well, it raised an obvious question, in no rush to cut, why go with 50? if you look at the vote, this is the first vote that involved a dissent since 2005, so that raises some questions for us. if you look at what they're doing with the balance sheet, they're still running off the balance sheet to some extent while they're cutting rates and lastly, when you look at our own barometer, our own forecast of where things are headed, what's happening is, the degree of uncertainty around the forecast path is actually getting wider. so there are a number of points here that suggest that maybe we are at a turning point and you're getting some confusion, if you will, in the story because the data isn't just clearly moving in one direction anymore. >> right. >> michael santoli, what's the market saying to you? >> it's sort of run out of things in the short term to complain about or quibble with

about the environment. if you go back to mid-july, july 16th we made our prior peak in the s&p 500 before today. we're only up 1% since then. what did we spend the last two months doing? going from maximum confidence in the soft landing to questioning it every data point. is it still intact. is the fed behind the curve? are they willingly behind the curve? we all know that 5.25% on the fed funds rate and above, where we were until yesterday, was offsides. no matter where you think it has to go to, yes, powell said we're in no hurry to get down to our target neutral rate, but they're in a hurry to get started probably tacitly admitting they should have gone in july or would have if they had the data that they soon thereafter did get. so i do think you have an embrace of this idea that it was an optional 50 basis point cut but one happening for generally the right reasons and not because of an economic emergency. it's a soft landing preservation plan, not a resuscitation plan. all that is to the good. the issue is, i think, and, you know, hugh's getting to this to

a degree, you're starting from a point where the market wasn't cheap. we've already been on the big eight day win streak in the s&p 500. i think you were pretty well priced for a soft landing. the question from here, just incrementally how much better it can get in the environment even if we've restored this idea that the fed is a buffer to any potential economic weakening down the road. we're still in that late cycle psychology, but for now in a comfortable spot within it. >> just to circle back, you said we would be around 5720 for the s&p at the end of next year and we're kind of there today. as positive as you're feeling about the outlook what's it going to take for stocks to keep rising? >> it's going to take a lot for stocks to keep rising. i tell everybody, remember, it's time not timing that's the secret to success, so you probably should ignore what i'm telling you. but right now we're over valued and as i mentioned, there's a lot of other things that are very problematic. one is there's widespread optimism. that's not a good thing for the markets.

the second thing is, as mike has gotten to, or suggested, really when you take a look at sector performance and lots of other things, the market has been acting very defensive. so i think if you put that all together, and it says to me, on a short-term basis, again this is more timing, on a short-term basis we're likely to give up this big surge and likely to go down and go down to -- this is the good news, down to levels that are much more rationale or give us some upside potential for 2025. right now, unfortunately, as i do the number crunching, we don't have a lot of upside potential from this point to the end much 2025 and that's not very good news for stock buyers. wait until we get to a better entry point. >> yet, you say we could not ask for a better set of variables or outcome for 2025, the outlook is good? >> if you look at the economy, the prospects for the -- for earnings, obviously, federal reserve policy long term interests you would say this is

a perfect setup for 2025. i totally agree with that. the problem is valuation. the problem is we're over valued or we're just -- we really discounted all or priced in all of 2025. i want to get to a level where it's not all priced in and we have some upside potential. we don't have that. >> gentlemen, thank you so much. hugh, kevin, michael, appreciate it. >> thank you. and the nasdaq is the best performing of the major averages today. unlike the dow and the s&p, it didn't hit a record, but still, the chip stocks are leading this ramaswamy helping to erase some of their month-to-date declines. nvidia in particular. seema moody has more. seema? >> kelly, that's right. the fed's rate cut sparking a rally in chips. the etf on pace for its best day since early august. worth eatinoting the sector doe outperform. arm holdings, jpmorgan just had a meeting with management and their takeaway the chip designer can drive 20% revenue growth in

the next few years as ai workloads from data centers will require higher levels of cpu com putt. elsewhere nvidia up another 5% and now up about 10% from a couple weeks ago. the stock's rebound has coincided with nvidia's ceo jensen huang's media blitz touting the promise of accelerated computing at a number of conferences just this week at dreamforce with salesforce ceo marc benioff. take a look at intel higher after clarifying it will not sell its stake. that's providing relief for shares of mobileye up about 17% on the day. this as the semiconductor industry is awaiting earnings from micron next week. td securities cutting its price target following a challenge that does suggest pricing stock -- the stock is up today, but one of the key laggards so far this month, down about 16% from its high.

ty and kelly. >> thank you very much. president trump indicating he wants to put a cap on credit card interest rates. eamon javers has the details. >> that's right. we're getting a response from the american bankers association to this new proposal from former president trump last night in which he said he wants to put a cap, as you say, on the interest rates that credit card companies can charge to consumers. here's what the former president said at a rally last night. >> working americans catch up, we're going to put a temporary cap on credit card interest rates. cap it around 10%. we can't let them make 25 and 30%. >> here's the response now from the american bankers association. they say, while we don't know the specific details of this proposal, aba has opposed similar interest rate cap proposals in the past including one from senator bernie sanders and congresswoman alexandria ocasio-cortez during the 2020 campaign because they would result in the loss of credit for the very consumers who need it

the most. they say instead, these consumers would be forced to use less regulated, more risky alternatives including payday lenders and loan sharks. so, tyler, this is an interesting one because this continues the former president's economic populist streak here. a number of proposals over the past couple weeks aimed at working class voters designed to appeal to that group. this is a republican party that's very different than it was four or eight years ago. the republican party here saying that this would be a temporary patch, that is, a temporary proposal to cap these interest rates by the credit card companies. if you had the votes to get that passed in congress you would really in practical terms never be able to get the votes to undo that. you can't imagine a congress in a world where credit card interest rates were capped voting to unleash them on their voters. if this were to happen, if they could get the votes in congress, it would be the kind of thing that would be hard to undue. >> it's very interesting that a

gop nominee would be calling for a form of price caps, something that as you point out, representative alexandria ocasio-cortez and bernie sanders called for. that's -- >> yeah. >> politics does make strange bedfellows. >> we're seeing the popular thrust in both of these parties on the campaign trail try to match each other, populist proposal for populist proposal where this election is going, where the political debate on the economy is going, and it's all about the battle for the union vote in particular, and for the working-class white vote. we saw this decision by teamsters and others to participate or not participate in the election. this is all about winning those voters, and you can see the former president here, as he goes through his proposal on not taxing social security benefits, for example, also not taxing tips, he's going after those working class voters that the republican party has concluded they need to win. >> it really is a question of who can put the most cheese on

the table i suppose. >> yep. >> >> thanks. >> tbankers don't like it. >> you bet. >> here's our power check as we head into break. on the negative side is progeny, the fertility benefits provider plummeting after the firm lost a, quote, significant client. on the plus side darden restaurants the olive garden parent partnering with uber for deliveries later this year and that and better guidance offsetting its weak fiscal q1. "power lunch" will be right ck. oman 1) all right, here we go. uggggh. (man 1) oh no, no, no, no, no, no! (man 2) what's my next step? oh! ugh. (girl) dad. (vo) you break it. we take it. (woman 2) we can take it. (vo) trade in any phone, in any condition at verizon for the new google pixel 9 with gemini. (man 2) give me a recipe with these ingredients.

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it also rose yesterday. why did rates go up after the fed cut? because mortgage rates don't follow the fed funds rate exactly and loosely follow the yield on the 10-year treasury which went up. the mortgage market has been expecting a cut and pricing it into mortgage rates for more than a month. rates have been reacting to economic data showing inflation moderating. so take today's rate and compare it to the rate on july 1st. just a few months ago which was 7.14%. that is a full percentage point drop. so what does that mean to today's home buyer? if you're buying a $400,000 home with 20% down on a 30-year fixed your monthly payment not including taxes and insurance is $210 less than it was on july 1st. that's why we saw existing home sales in august drop 2.5% to the lowest august reading since 2010 because those sales are based on contracts signed in late june and july when rates were higher.

sales fell even though inventory improved slightly. most agents will tell you the buyers are waiting for mortgage rates to go lower. we've seen that in the mortgage demand to buy a home. it's still lower than it was a year ago even though rates are lower than they were last year at this time. kelly. >> i think it's worth emphasizing this maybe ten times the fed cuts rates and mortgage rates are going higher. >> 6 basis points higher since the fed cut because they were priced in and a lot of people in the mortgage market expected rates to go up a little bit, but the trajectory at least is somewhat lower. lower than it was in july, far lower than it was a year ago. we hit 8% last october. the expectation is rates with i -- will come down slowly. >> it's a great point that probably the anticipation that this was coming is what helped to lower the curve for some time. diana, thank you for now. diana olick. let's get more insight on the impact of rates on housing from

a top-selling broker in new york city. nobel black is back with us. it's great to see you and this is a perfect time to check in. welcome. >> thank you for having me. >> so what -- the irony is, the fall in mortgage rates going into today, forget the fact that they backed up, call it 6.10, wherever they are, i have heard that wasn't doing a lot to stimulate activity in the market, byuyer interest rate an that sort of thing. >> we started seeing in new york, but i think nationally in hot markets we started seeing the buyers were coming back into the market in july and august. our signed contractness july and august were well up over last year for manhattan. i think manhattan in august was 30% higher than last year and brooklyn 50% higher. >> wow. >> not because we're jumping in because of lower rates but the big news from yesterday which we were thrilled with it's now here. last year when we thought the fed was going to be cutting, people were starting to come

back in, busy fourth quarter and went flat. we started seeing that again in anticipation and now i think it's going to be -- >> are these new buyers paying cash or taking out mortgages or how does that change? >> so the bulk of the market for this past year or 18 months has been cash by far. you're starting to see people start tiptoeing back into financing. not that deals are financing yet but they will be. the people that could be cash will start choosing again to finance. once it gets lower. >> one of the things that's interesting to me is the idea that mortgage rates are kind of like bonds, when interest rates fall or the price of the bond goes up. doesn't that kind of happen in housing too when interest rates fall, doesn't that allow the seller maybe to raise the asking price a little bit because -- >> theoretically could. the larger point is a very well-made one, which is any buyer waiting with rates coming down at affordability could end

up being worse six or 12 months. >> because. >> the rates will be lower but more demand for properties. >> prices -- it will be a demand not the seller asking more necessarily. >> this is an important thing and curious one. if you are trying to make housing affordable again because you think that's best for the economy, and this is arguably one that pushes prices higher, how much higher can they go? >> i don't think this is pushing them higher but the short-term immediate effect could be they go higher. long term, this is still the right direction. lower rates mean more build houses and more get back in. >> more inventory. >> we have a housing crisis in the sense there's not enough of it. we need people building more houses. long term this is the right direction. short term if buyers are sitting waiting the wrong move i think. >> go ahead. jinx. >> after you. >> so more -- more buyers may be coming in.

what is the tail effect of lower interest rates on builders? they can get loans at a better price. >> sure. >> they're going to be able to build at a better price. >> this is marginal. the lower they go like you get some [ inaudible ] and then s eventually more inventory, hopefully, i don't want to say go down, but market rate level with buyers. >> what do you see -- i mean if you -- if you were advising the presidential candidates what they ought to do in terms of creating more housing so the mismatch is fixed? >> the biggest thing is red tape. what people have to go through and the hurdles in order to build. all of the regulations and things we have to satisfy, whether it's state or national level, there's so many impediments besides the fact it's hard to make money doing this. you have the rates and all of

this and taking a gamble but they almost add a different layer or an additional unnecessary layer on top of that, just they say they want more housing but some sense they make it very hard. >> to build. >> yeah. >> go next door where they're putting in 600 i believe it's a big, bi big, big deal. >> years and years in the making. as soon as they get the go ahead they spring up overnight. >> if you want to go let me know i'll take you down. >> you'll sell us one. >> thanks so much for joining us. >> thank you for having me. >> tech stocks leading the market rally. the sector hitting a three-week high. but our technician says the caraq still has a major hurdle tole before she would invest. your latest market navigator is next. but may be missing benefits they could really use. extra benefits they may be eligible to receive at no extra cost. and if you have medicare and medicaid, you may be able

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lunch." with stocks just off session highs, but still up nicely across the board, 568 points for the dow, 1.9% for the s&p, 2.8% for the nasdaq. our trader believes the technical support move higher but not quite signaling an all clear just yet. bring in jessica, director of

investor research at stock brokers.com. good to see you. what don't you see that you're looking for? >> yeah. absolutely. there is a beautiful bullish setup that i see on the daily chart for spx where we formed what's called a cup and handle. this is important development because this type of formation is actually what formed on the weekly view for the s&p 500 and the nasdaq wi100 to give us the larger rally when we were looking for pullbacks and into the ripping rally if you will. i'm concerned about the nasdaq 100. technology is not leading the rally. we're seeing participation today, as wehad a catalyst pushing us higher but as you know i like to look at the, 13, 26 and 40 weekly averages. the nasdaq 100 is not. we are actually acting -- the one quarter of prices the 13 weekly acting as support right

now which is a hurdle to overcome. >> you want to see not just today's nearly rally, but see much stronger price action, more of the catch-up and leadership. let me ask you this, high pressure johnson, top of the hour said he doesn't think technology is going to be the leadership now. could it be that there's a flu source of leadership? >>. >> yeah. i mean i think technology is actually going to be a participation, but the leadership now is within the equal weight. i'm looking at broader participation and that's good. that's reflected from a fundamental perspective even as we have a quarter of positive growth from the other 493 less the magnificent seven and the technicals reflect that. which is interesting. if we have the equal weight making higher highs we see strength with the s&p 500 making higher highs. that rally isn't as narrow, it's broadening and strengthening and that's a good sign. however the ai narrative is very, very real. that leads into productivity and from a charting perspective, we

could hit a major area of resistance within the nasdaq 100 which could cause us to get into consolidation, perhaps with uncertainty at that seasonality we'll see as the election cycle gets closer and post-election as long as we overcome those hurdles. we're set up for a good rally. >> i will be watching that to see if the nasdaq goes back into the role or not and if the equal weight and the broader markets can chug along. thanks for joining us today. we appreciate it. always good to see you. >> thank you. >>, tyler, over to you. >> u.s. energy production booming lately. can it keep up the pace? that's the question. brian sullivan is in houston to try to find out. what do you say, brian? >> i'm going to find out but leave you like with a tease or quiz your and kelly can google it during the commercial break. the u.s. is the largest producer of natural gas in the world. but how much gas are we actually producing and for bonus pots, in

which country is number two? the answer for 400, tyler, after this break.

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let's take our eye off stocks for just a second with the dow up 563, and look at the energy market. vice presidential candidate jd vance telling "squawk box" last week that the u.s. could double or even triple its natural gas output. our own brian sullivan is in houston with more on that story. is that even possible given that we are producing -- and i looked, we cheated here, a thousand billion cubic meters of gas per year? >> sounds like carl describing the universe. a million billion. 155 billion cubic meters, 125 bcf. we are the biggest natural gas producer in the world, by far. by far, russia number two, and then you go down the line, qatar, iran and others. the chart, we are way, way

ahead. so when i heard the vice presidential candidate, jd vance, say that, to joe and andrew and becky, i thought oh, my god, i know, here we go -- hi. i saw that one coming. he's a fan. your favorite tv network. here's the thing, when i heard jd vance say that on camera i thought we were a lot, is that possible? theoretically we have learned it is possible that you could physically get that much gas out of the ground. we've already raised it by 50% over the last ten years, but here's the thing. if you and kelly owned a restaurant and wanted to expand it you're going to need customers and the big question is, is there enough global demand for more u.s. gas, given that qatar and yes, russia, still producing a ton of lng and that's really the question. can we do it? yes. do we have the customers? maybe. just today, and tomorrow, venture global, a private firm, they've got their first cargos

leaving to go to europe that are on ships that they've built. built themselves in record time, trying to -- some of it may end up in ukraine because as you might know they're having gas issues with the pipeline being cut off. can we do it? yes. do we have the demand and permitting? that's the question. do we have one fan? yes, apparently i have one fan. >> well, i would like to meet him or her. how -- what accounts for the growth in our natural gas production? is it fracking? >> yes, it does because when you take oil out of the ground, you get the natural residue for the most part of gas. in fact, we had so much gas until the lng boom, that gas was almost worthless. we burned it. in fact we still burn a lot. the technical term is flaring. walls of fire going up because you have to burn it off. you don't want it just to go nowhere.

that gas now has value. the price at 230, six bucks two and a half years ago. even at 2.30, if we can freeze it and put it on ships, the funky looking ships that we showed you, one went by, we missed it by a couple minutes, then you can unfreeze it when it gets to its destination, rigasfication, and then sell it. leave you with this rbi -- one lng tanker average size tanker, is enough to produce heat and light, electricity, for 1 million average-sized homes in europe for a month. one ship, equals a million homes, in germany, heat and light, for one month. here comes a ship around the bend, but it's a little bit -- little bit too slow. but yeah. that's -- it's amazing how much gas we're producing, guys. >> brian, thank you very much. brian sullivan. surprise guest who stopped by.

>> yes. >> thank you very much. >> i knew that was coming. >> you could see that. there's a boat. there's somebody. cool. thanks, brian. >> let's get to kate rooney for a cnbc news update. kate? >> hi there, kelly. hezbollah's leader today called the two days of pager and walkie-talkie attacks across lebanon an act of war. it comes as the israeli military, which has not commented on the detonations, launched a wave of attacks on lebanon today and an israeli official tells nbc news an involved air strikes and artillery, but the ground forces didn't cross in to lebanon. hezbollah has vowed retaliation. brazil's supreme court fined elon musk's x platform about $900,000 after some users were able to briefly access x despite a nationwide ban. the company says the brief access was unintentional, but the presiding justice accused the company of committing a, quote, trick. x has been banned there since last month for ignoring judicial orders. and finally jetblue is planning

its first airport lounges as it chases high spending travelers. the airline says the lounges will open at its hub in new york next year and then in boston. customers who have the highest tier of jetblue's loyalty program and those booked in its mint business class will have access to those loujnges. following delta's lead. >> not just stocks ripping higher today. gold hitting a record high above $2600 an ounce. we'll check out the moves in the bond space. >> crypto watch sponsored by grayscale. crypto investing begins with grayscale.

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welcome back to "power lunch." stocks are up nicely today with the dow and s&p hitting record highs after the fed's 50 basis points rate cut yesterday, but bond yields are higher as well. let's get to rick santelli for more on the reaction here. we pointed out the 10-year yield

is higher. mortgage rates are higher today than they were a few days ago. >> oh, my god, yes. this is the unintend the consequence when everybody at the federal reserve and government tries to massage the economy. we still have a fed with a huge balance sheet and what you're describing are yield curves. let's look at a variety of yield curves. 10s versus 2s versus 5s. you look at how each one is steeper year-to-date. these are dramatic moves. what does it mean? exactly what you're saying that the fed lowered rates and might see mortgages rise. there's no might here. 10s, 20s, 30s, 7s start to rise mortgage rates will correlate with that and move higher. commercial real estate my guess is like some of the sales recently in states like minnesota, you're going to see more sales. if commercial real estate was hanging on for the betterment of lower rates and their financial situation there might not be

anything better in there. let's talk to jason. jason, most of the issues with interest rates, outside of a 2-year that briefly is in positive territory, not by much, mostly rates have gone up. what are you seeing given the notion much how the stocks have soared? >> yeah. initially on the 50 basis point cut we saw that snap rally up, and as we usually see on fed days, fade the first move. so while we have the move up, 30 minutes later, the market sold off. we want to be inbound on the day and took the entire overnight session to take in what the fed was trying to do. we woke up this morning and saw up 2%. >> oh, yeah. stocks soaring. volatility, the vix is dropping as well. weight going on with the puts? >> yeah. sure seemed like it was a risk off thing. the vix came in over a point and a half. normally we think that people are less worrisome about what's going on in the overall market. that's not what we're seeing today.

we're seeing lots of put buyers, people trying to protect, whether it's this rally or just thinking they don't believe in it. we might see a retrace lower. the last two weeks of september tend to be very poor historically performing weeks. so it might be a combination of things. there are people that don't believe this rally. >> you know, i believe in the rally. the issue with the rally is, is that, you know, when i hear the current biden administration bragging about how the stock market is up and 50 basis point ease this close to the election, there's so many cross-currents going on. are you hearing these things among traders being talked about? >> yeah. you know, the fed is supposed to be, you know, not political and not take any, you know, party stances into consideration, but it is odd timing for this to happen, and the next fed meeting happens to be two days after the election. so that could be a very intriguing week for the market overall with the election and then the next fomc. >> jason. thank you. tyler, before i throw it back to you, there's a couple issues.

fed fund futures pretty much, monday and tuesday of this week were well over 60%, so my hats off to that contract. it always seems to be 100% accurate when you're within three weeks of a meeting. back to you. >> very interesting thing to point out. as you pointed out, i believe, earlier this week as well. rick santelli, thank you. meantime candy makers, hershey, mondelez and to totsie roll are lower. halloween around the corner. the stocks are out performing the broader markets. we'll trade some names that could benefit from a lower rate environment. all that and more when we come back in two minutes.

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three-stock lunch, ladies and gentlemen. we don't want you to go 48 hours and begin twitching without a three stock lunch. on the heels of the fed's half-point cut we're going to take a look at a few names that could benefit from lower rates. first up let's talk about pepsi. our trader banks on a comeback story. doug butler is our guy today. rockland trust svp and director of research. you are high on pepsi. >> i am high on pepsi. and not because it's been a great story of late but really because this is as attractively valued as pepsi has been in probably a good decade and a half. we think this stock has maybe been oversold a bit and we think it has really a great chance to run here. and we think their fears in north america are a little overblown. >> all right. well, pepsi has come up a lot lately, by the way, as a potential play here. let's move along then to next tera whose shares are up 35%

year to date. this name you think has even more potential now. why? >> i think they actually -- they're the biggest clean energy producer in the country. they're a play on that. they're still one of the largest regulated utilities. so they're a play on safety but also with upside growth. again, growing electrification. and again, as we're seeing today in the markets, if ai, the ai buildout still remains strong into next year, there's going to be much more data center power usage and we think nextera's a beneficiary of that. >> and another one and in an allied area, eog resources. shares up about 6% over the past three months and you say this is the most attractive, high-quality name in the enp space. doug? >> we really like it. they've got a really strong balance sheet. they've got about 1.6 billion in net cash. and that gives them flexibility. if oil goes back down into the 50s or 60s, it allows them to

preserve their dividend but also will probably allow them to go and make a play for an acquisition target. but if things remain strong, they still have that capacity to continue to pay back and even buy back shares if things continue on this front. >> all right, doug, thank you so much for your insights today. we appreciate them. doug butler. >> thanks, kelly. thanks, tyler. >> and with every three stock lunch you've ever done go find the podcast on any platform you listen to. we'll be right back.

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a new documentary called

with the wnba rising offering a new look at how the league is growing and managing some of its challenges too. >> in 2024 the wnba is estimated to bring in $200 million in revenue. just for comparison the nba earns $10 bll billion per season. the wnba has historically lost around $10 million per season. >> some estimates have said the league is going to lose about $50 million. is there a scenario that you will try to raise more money right now? >> probably not. we probably don't need to raise capital like we did when i came in in 2020, start add cessing raising capital. i think it's more about the impact we're able to have on bringing in corporate partners at valuation that's are worthy of now our viewership, our attendance, and i think corporates are seeing that wow, if i want to get with a consumer brand and a growth property and i want to get to women and women of color, we're 80% women of color, wnba might be i place

where i would allocate my discretionary capital. i'm not sure if we didn't raise that capital i'm not sure we would have been ready for this moment. >> to watch the entire documentary go to cnbc.com/sport. >> it's one of the really great stories in sport this year i think, is the rise of interest in women's basketball, driven by caitlin clark, angel reese and others and it's a compelling product. let's give you a check on the markets, shall we? why not? because they're up 570 points. >> we're just off the highs. >> we're about 70 points below the highs of the day. >> indeed. and by the way, if you're looking for any red in what's basically been a sea of green take a quick look at shares of kechers which have turned sharply lower down 11%. company executives are presenting at the wells fargo consumer conference and me said china is experiencing severe consumer discretionary pressures worse than anticipated into the back half of the year. other footwear makers like nike, deckers, some others there, crocs are selling off in sympathy. nike's actually fractionally

higher right now. >> deckers has uggs. do they have -- >> what's that one with mr. -- >> ufas? >> hello dude. oh, crocs owns -- what do i know? we're going to leave you now. thanks for watching "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm mike santoli in for scott wapner today. this make or break hour begins with a rate cut rocket launch to new records on wall street. investors globally embracing the federal reserve's half percent cut 24 hours ago as the right move for the right reasons, preserving a potential soft landing and stoking risk appetites. here's the scorecard with 60 minutes to go in regulation. cbs and p500 just off the highs. that surpasses its former peak